Babylon Integrates with Aave for Native Bitcoin (BTC) Lending via Trustless Vaults

Babylon, a Bitcoin staking protocol, is set to integrate its trustless vaults with the Aave lending platform. This collaboration will enable users to leverage their native Bitcoin (BTC) as collateral to borrow assets directly on Aave, without the need for wrapped tokens. The move aims to unlock Bitcoin's liquidity within the decentralized finance (DeFi) ecosystem, providing BTC holders with new utility while maintaining self-custody. By utilizing Babylon's secure, non-custodial vaults, the integration seeks to offer a safer and more capital-efficient method for Bitcoin-backed lending, potentially attracting significant BTC capital into DeFi.